AXA Brings Positivity and Peace of Mind to Retirees with New JoyAhead Immediate Annuity Plan
Immediate access to lifelong guaranteed monthly income
Doubled monthly payout for extra support in case of Severe Dementias
AXA Hong Kong and Macau (AXA) today announced the launch of its first immediate annuity product JoyAhead Immediate Annuity Plan (“JoyAhead”). Tailor-made for Hong Kong pre-retirees and retirees, the new plan provides immediate and lifelong monthly guaranteed annuity payment, and a terminal dividend to boost potential returns, as well as a special dementia companion benefit which doubles the monthly payout for up to 10 years to provide extra support in the event that the insured is first diagnosed with severe dementias before age 801.
People around the world are ageing rapidly and Hong Kong is no exception to this trend. According to the Census and Statistics Department's population projection, the percentage of the population of age 65 and above will gradually increase from 20.8% in mid-2022 to 25.3% in 2028. With the increasing ageing population and longevity, the age-related dementia is inevitably becoming one of the most worrying illnesses among the silver-haired group. Currently, one in ten people aged 70 or above in Hong Kong suffers from dementia, with the rate increasing to one in three among those aged 85 or above. It is estimated that there will be about 300,000 dementia patients in Hong Kong by 20392.
Drawing on its deep knowledge of the Hong Kong market, AXA created JoyAhead to address local customers’ most-pressing concerns. This year’s AXA Immediate Annuity Survey* revealed that 61% of Hong Kong residents aged between 50 and 85 are worried about assets depletion due to longevity. Moreover, only 37% of respondents are confident that their current retirement savings will cover future retirement expenses, and one in five have not yet prepared for an unexpected emergency.
JoyAhead meets the silver-hair community’s identified needs by providing a dependable source of annuity income for the lifetime of the insured alongside enhanced protection for difficult times and special features to bring customers greater flexibility and peace of mind:
- A comprehensive immediate annuity plan with inclusive entry age from 50 to 85: JoyAhead’s entry age is as low as 50, which is able to cater the needs of pre-retirees and younger retirees. JoyAhead provides additional flexibility to customers with easy underwriting – if the total single premiums for JoyAhead policies are less than or equal to HKD3 million, no medical underwriting is required3.
- Guaranteed and lifelong monthly annuity for worry-free retirement: Customers make a single premium payment and then enjoy a monthly guaranteed annuity payment, starting on the first policy monthiversary and throughout their lives. The cash value of the policy is guaranteed and payable by JoyAhead when the policy is surrendered.
- Terminal dividend to boost potential returns: From the end of the 3rd policy year, customers may receive a terminal dividend as a lump sum when the policy is surrendered or upon death of the insured4. A terminal dividend lock-in option enables customers to transfer a portion of the latest terminal dividend to their accumulation account, which can be accessed to provide extra cashflow from the eleventh policy year.
- Doubled monthly payout when first diagnosed with severe dementias: Dementia is one of the most common neurodegenerative disorders among the elderly. If the insured is first diagnosed with severe dementias before age 80, JoyAhead will pay a monthly Dementia Companion Benefit starting from the next policy monthiversary after the date of first diagnosis for up to 10 years, the amount of which is equivalent to 100% of the monthly guaranteed annuity payment to help alleviate the financial stress of the disease on the insured and their caregivers5.
- Enhanced life protection with up to 120% death benefit: JoyAhead also offers life protection, which can be equivalent to 120% of total premium paid6, to provide financial support to loved ones if the insured passes away. Flexible settlement options allow customers to choose how death benefits will be paid to best support beneficiaries.
For more information about JoyAhead, please visit: https://www.axa.com.hk/en/joyahead-immediate-annuity-plan
The above information is for reference only, terms and conditions apply. For more details on product features, content, terms and exclusions, please refer to the product brochure and policy provision.
* About the AXA Immediate Annuity Survey
Commissioned by AXA Hong Kong and conducted by YouGov in Hong Kong in April 2023, with a total of 505 respondents aged 50-85.
Remarks:
[1] “Age 80” refers to the policy anniversary on or immediately following the insured’s 80th birthday (whichever is earlier)
[2] Source: Hong Kong Alzheimer’s Disease Association
[3] Any application for JoyAhead is subject to approval of the Company
[4] The terminal dividend is not guaranteed and to be determined by the Company from time to time at our sole discretion
[5] This benefit can be claimed once only
[6] Extra 20% of the total premiums paid is not applicable if the insured’s death happens (a)when the insured’s age is above 80; or (b) during the first 3 policy years and it is not accidental death
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